The Intangible Assets tab helps manage and track a business's non-physical assets, such as intellectual property rights, patents, licenses, or goodwill. Users can enter detailed information for each intangible asset, oversee its amortization, and monitor its book value as it changes over time.
To create a new intangible asset, click the New Intangible Asset button.
When you create a new intangible asset in the system, its acquisition cost will initially be zero. This is because there hasn't been any transaction linked to this intangible asset yet. To set an acquisition cost, you need to record a transaction that represents the purchase of this intangible asset.
For instance, if you bought an intangible asset with cash, you could navigate to the Payments tab and click on the New Payment button. Here, you would record the payment by allocating it to the Intangible assets, at cost account and then choose the specific intangible asset.
If you bought this intangible asset on credit from a supplier (through a purchase invoice), you would navigate to the Purchase Invoices tab, click on the New Purchase Invoice button, and categorize it in the same manner as categorizing a payment.
The Intangible Assets tab is comprised of several columns:
There are following columns:
Intangible Asset Code
Name of Intangible Asset
Description of intangible asset
Amortization rate for an intangible asset
Determine the control account associated with an intangible asset. If you haven't set up custom control accounts, it will default to Control account - acquisition cost.
This represents the sum of transactions assigned to this intangible asset, which reflects the acquisition cost of the intangible asset.
This represents the total of Amortization Entries for this intangible asset, indicating the accumulated amortization amount.
Calculated by subtracting Amortization from Acquisition cost.
Specifies if the intangible asset status is Active or Disposed.